ID :
89362
Fri, 11/13/2009 - 10:02
Auther :
Shortlink :
https://www.oananews.org//node/89362
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INFLATION RATE IN 2009 BELOW 4 PCT : BI
Jakarta, Nov 12 (ANTARA) - Bank Indonesia (BI/the central bank) has predicted that the inflation rate in 2009 would be below 4 percent as a result of economic slow-down and global economic crisis, Acting BI Governor Darmin Nasution said.
"The inflation rate this year is projected at below 4 percent. This rate is not at the normal level because the economy is slowing down," the acting BI governor said at a hearing with House of Representatives (DPR) Commisssion XI on financial affairs, here on Thursday.
He said that the normal level of inflation in Indonesia was at a range between 5 and 6 percent. The January-October calendar inflation rate is 2.48 percent while the year-on-year inflation was 2.57 percent.
Darmin said that Indonesia`s economic slow-down was seen in the slowing down of national banking credits which up to the end of Octber 2009 stood at 7 percent.
He said that the slowing down of the economy caused sector`s credits to grow only at 2 percent, and affected overall credit growth.
"If the credit growth is seen per sector it shows a good growth, particularly credit for the electricity sector which rose 30 percent, agriculture 14 percent, mining, communications and transportation 15 percent," he said.
Darmin said that even though the growth of credits in the country was slowing the banking sector still gained solid and stable profits.
This is seen in the well-maintained capital adequacy ratio (CAR) at 17.7 percent in September 2009 which was far higher than the minimum requirement of 8 percent.
In the meantime, the non-performing loans remained under control at 4.3 percent which was smaller than the maximum limit of 5 percent.
Answering questions raised by legislators on the high banks` lending rates, Darmin said that BI had made various efforts, including cutting its key rate and calling on banks to lowering deposit rate, but banks` credit interest rates declined very slow.***2***
"The inflation rate this year is projected at below 4 percent. This rate is not at the normal level because the economy is slowing down," the acting BI governor said at a hearing with House of Representatives (DPR) Commisssion XI on financial affairs, here on Thursday.
He said that the normal level of inflation in Indonesia was at a range between 5 and 6 percent. The January-October calendar inflation rate is 2.48 percent while the year-on-year inflation was 2.57 percent.
Darmin said that Indonesia`s economic slow-down was seen in the slowing down of national banking credits which up to the end of Octber 2009 stood at 7 percent.
He said that the slowing down of the economy caused sector`s credits to grow only at 2 percent, and affected overall credit growth.
"If the credit growth is seen per sector it shows a good growth, particularly credit for the electricity sector which rose 30 percent, agriculture 14 percent, mining, communications and transportation 15 percent," he said.
Darmin said that even though the growth of credits in the country was slowing the banking sector still gained solid and stable profits.
This is seen in the well-maintained capital adequacy ratio (CAR) at 17.7 percent in September 2009 which was far higher than the minimum requirement of 8 percent.
In the meantime, the non-performing loans remained under control at 4.3 percent which was smaller than the maximum limit of 5 percent.
Answering questions raised by legislators on the high banks` lending rates, Darmin said that BI had made various efforts, including cutting its key rate and calling on banks to lowering deposit rate, but banks` credit interest rates declined very slow.***2***
